Ethereum has seen a slight decline over the past week, dropping by about 5% after a period of notable growth in the previous months. At the time of writing this report, Ethereum is trading at around $3,633, after fluctuating between $3,500 and $3,700 over the past day.
This price movement follows a general calm in the market, as many traders took profits after Ethereum's previous upward trend. Recent derivatives and chain data suggest that Ethereum may be heading towards a consolidation phase.
Derivatives market data indicates selling pressure.
Analyst Darkfost from CryptoQuant shared forecasts indicating increased selling pressure and potential weakness in the short term in the ETH futures market.
The analyst confirmed that despite multiple attempts to break the resistance level of $4000, Ethereum has not broken through yet, indicating that the market may be hesitant at current levels.
Darkfost noted that the behavior of the futures market has changed significantly over the past few weeks. According to data from Binance, the buy/sell ratio for Ethereum has dropped to 0.87, one of the lowest levels recorded this year.
A drop in the ratio below 1 typically indicates selling orders dominating buying orders, suggesting that traders are closing long positions or opening short positions. The analyst noted that this trend began around July 18, and has largely remained negative since then, limiting upward momentum.
Additionally, the simple moving averages (SMAs) over 7 days and 30 days have started to trend downward, which could be a sign of slowing market momentum.
Binance still holds the largest open position for Ethereum futures among exchanges, making the market sentiment on the platform particularly influential. With sellers dominating the market more strongly, data suggests that this consolidation phase is likely to continue until buying activity improves.
Divergent opinions on Ethereum's long-term outlook.
While short-term market data indicates that Ethereum is undergoing a tough period, some analysts remain optimistic in the long run. In a recent post by Titan of Crypto, a widely followed market commentator on X, a potential price target of $8000 was predicted.
According to Titan of Crypto, the price structure of Ethereum is forming a large monthly triangle pattern that could eventually lead to a breakout, paving the way for a significant rise.
This bullish sentiment aligns with other bullish forecasts for coin X, as traders expect Ethereum to return to its all-time high or surpass it once it overcomes key resistance levels and broader market demand returns.
However, at the moment, it appears that the lack of strong buying activity in the futures market and ongoing selling pressure in the derivatives market are limiting short-term gains.
